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Georgia Senate approves tighter oversight of nonpublic postsecondary schools with SB 400
Summary
The Georgia Senate passed SB 400 by substitute (48–1), strengthening oversight of nonpublic postsecondary institutions, expanding the tuition guarantee trust fund, permitting bonds or letters of credit for compliant schools and requiring greater protection and custody of student records.
The Georgia Senate on Feb. 11 passed Senate Bill 400 by substitute, a measure aimed at strengthening state oversight of nonpublic postsecondary educational institutions and protecting students who attend them. The chamber agreed to the committee substitute and approved the bill on a recorded vote of 48 yeas to 1 nay.
Senate Bill 400, described on the floor as an agency bill from the Georgia Nonpublic Postsecondary Education Commission, would prohibit unaccredited institutions from offering degrees, expand the commission’s authority to approve or deny courses and programs, and bolster safeguards for students if a school closes abruptly. "This commission protects students. It protects student records," the sponsor said on the floor, noting the commission’s role in preserving transcripts and program credentials.
The sponsor told colleagues the system overseen by the commission includes roughly 358 authorized schools, about 60 applicants, and approximately 81,000 students, with gross tuition in the nonpublic sector stated as about $855 million. The bill adjusts the tuition guarantee trust fund—used to make students whole when institutions fail—and allows high-performing schools to post a bond or letter of credit in lieu of paying into the fund; other institutions would contribute a small annual percentage to support the guarantee program.
Supporters argued the measure gives the commission more tools to address 'bad actors'—for example, storefront operations that recruit students, collect tuition and then close without delivering services. The measure also allows the commission to retain records so that students can obtain transcripts and credentials even if an institution closes.
The committee substitute was recommended by the Senate Committee on Higher Education and the substitute was agreed to on the floor. Following the committee substitute’s adoption, the main question was ordered and the Senate recorded 48 ayes and 1 nay on final passage.
The bill will return to its next procedural steps following passage by the Senate. The Senate sponsor offered to answer questions on the bill and to walk through details, and no floor debate in opposition was recorded at the time of the vote.
